Following a mandate by the Reserve Bank of India, banks have added an extra security layer to phone banking transactions. Customers will now have to punch in an additional code, a one-time password (OTP), to authenticate their identity and complete all mobile banking transactions. This includes those conducted through the computerised IVR (Interactive Voice Response) mode as well.
The OTP is valid for a single operation only and a new code will have to be generated for each transaction. This unique password will be sent to the registered mobile numbers and e-mail addresses of customers.
The password will be valid for only two hours after it has been generated. Banks were initially supposed to implement the system from 1 January 2011. However, it is currently running in test mode as the banks had requested permission from the RBI to test the new system in a live scenario.
The RBI has permitted the test run to continue till 31 January. From February, all IVR transactions will have to mandatorily comply with the security measure.
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